Thinking Globally, Leading Consciously
Aspire to be a leader in the next five years or even the next five decades? It pays to adopt an updated style of leadership.
An ambitious CEO I work with in the agriculture sector is aware of the evolving global landscape and his role within it. With decades left in his career, he anticipates that the slaughter of livestock could become a criminal offence - a belief that shapes his strategic approach. His leadership, driven by evolving global ethical standards, technological innovations like lab-grown meat, and diverse business models, is aimed at achieving win-win outcomes essential for sustainable commercial success.
This approach is both rare and inspiring. Unfortunately, it stands in contrast to many current leaders in business and politics, whose self-serving actions often focus on short-term, local benefits at the expense of broader, global implications. These leaders typically pursue strategies that maximise personal or immediate gains, sidelining the long-term welfare of their companies and communities.
With years or decades ahead and a drive towards next-level success, I wonder if a winner-takes-all, self-interest-led, approach to leadership is the riskiest position a leader can take.
Leaders Who Lead for Gains Today
We see leaders more-or-less getting away with leading badly, as evidenced by several glaring missteps where actions appear to be their own interests:
Volkswagen’s Dieselgate Scandal: Senior executives promoted diesel vehicles with falsified emissions data with profits prioritised over environmental integrity and public health.
Theranos and Elizabeth Holmes: Holmes misled investors and the public about her company's health technology capabilities with personal gain prioritised over patient safety and trust.
Facebook and Mark Zuckerberg: Persistent issues around data privacy and misinformation have shown a focus on growth and engagement at the expense of societal well-being.
Purdue Pharma and the Sackler Family: Aggressively marketed OxyContin with misleading claims about its addictiveness, with profits prioritised over the health crisis it helped ignite.
Enron and its Executives: Engaged in fraudulent financial practices that prioritised short-term financial gains over long-term sustainability and ethical considerations.
Rio Tinto: Authorised the destruction of ancient Aboriginal caves in Western Australia to expand an iron ore mine, erasing priceless cultural and historical artefacts.
Russia’s Invasion of Ukraine: Has caused devastating human and territorial losses and triggered global food supply shortages and agricultural price spikes, affecting millions beyond its borders.
Despite the benefits of a more progressive form of leadership, many leaders still opt for a narrower approach. We all see this around us. Here are some reasons why leaders often focus on their own interests, and the consequences of each:
Short-term Gains: Leaders are frequently tempted by the immediate rewards of their actions, prioritising quick financial wins or boosts in stock prices over sustainable growth.
Pressure from Stakeholders: There is substantial pressure from shareholders, investors, and other stakeholders to deliver rapid returns, which can lead executives to make decisions that favour short-term success over long-term stability.
Lack of Accountability: In environments where regulatory oversight is weak and ethical guidelines are not strictly enforced, leaders may feel emboldened to pursue their personal agendas without significant repercussions.
Personal Winner-Takes-All Ambition: The drive for personal power, prestige, and financial reward can lead some leaders to overlook the broader impacts of their decisions on their organisations and the communities they serve.
Cognitive Biases: Leaders may be influenced by cognitive biases that skew their perception, favouring information that supports their pre-existing beliefs and personal benefits.
The key risk to the leader is reputational damage. Scandals and public outcries resulting from selfish leadership practices can result in the following:
Loss of Professional Credibility: Once a leader’s reputation is tarnished by scandals, it can be challenging to regain trust and respect in the professional community. This loss of credibility can limit future career opportunities and professional relationships.
Legal Consequences: Scandals often lead to legal challenges or investigations, which can be personally stressful, time-consuming, and financially draining for the leaders involved.
Financial Loss: Reputational damage can lead to direct financial losses, such as losing business deals, facing fines or settlements in legal cases, and experiencing a decrease in company stock value, which can impact personal investments.
Social Isolation: Leaders who are publicly criticised for their actions may face social ostracism, both within their industry and socially. This can lead to a loss of networking opportunities and a decrease in social capital.
Emotional and Psychological Impact: The stress from dealing with the fallout of reputational damage can have significant emotional and psychological effects, impacting personal well-being and the ability to effectively lead in the future.
Tomorrow’s Leaders Will Lead Beyond Lived Experience
At a time of greater data availability, transparency, and online activism, the way leaders influence and operate is set for a shift.
If you aspire to be a leader in the next five years or even the next five decades, adopting an updated style of leadership is essential.
It is crucial to consider how your decisions will resonate globally and through time. Moving away from localised, self-centred perspectives to embrace a more comprehensive, future-oriented, and globally informed viewpoint will allow you to leverage key global shifts and technological advancements, ultimately enabling you to leave a legacy of positive change. And, your peer or possible competitor will be the likes of the CEO mentioned at the start of the article.
“One of the criticisms I've faced over the years is that I'm not aggressive enough or assertive enough, or maybe somehow, because I'm empathetic, I'm weak. I totally rebel against that. I refuse to believe that you cannot be both compassionate and strong.”
Jacinda Ardern, former Prime Minister of New Zealand
It pays to lead beyond our lived experiences. By expanding our perspectives to encompass a broader view of the world, we can shape what we achieve. Beyond the confines of who we know, what we know, and how we operate lies a world of possibilities.
How does your worldview inspire, instruct, and influence your next-level success?
Whose leadership footsteps are you following? Or, what pathway are you set to pave?
I’d love to know.